I think Platini et al are trying to address the European imbalance at least at the CL and Europa League level by starting to implement
Financial Fair Play Rules starting in the 2013-2014 season. This of course does not address issues in domestic leagues.
If a club believes it can qualify for either competition in a season it must apply for a UEFA Club License at which point their financial records will be reviewed.
FFPR is not anti-debt, as long as the debt is being serviced by profits covering the interest rates. If the profit is less than the interest rates etc you will be denied a license to compete. Also, spending on infrastructure and youth development will be exempt from this “break even “ calculation. Ultimately it’s trying to limit scenarios of sudden success brought about by the arrival of a wealthy benefactor which in turn can be followed by an equally stunning collapse and possible dissolution of a club when said benefactor leaves. As London Sox mentioned, Leeds UTD and the Ridsdale era is a great example of spending beyond your means.
I’m trying to think of a recent example where a club would fall foul of the regulations…. perhaps Liverpool prior to the takeover would not have been granted their license. I believe they had profits of 27 M but a debt service of 40 M.. I may be wrong. Chelsea had a loss of 140 M in 2004-2005 and would be have been in breach of FFPR.
The irony here is that such rules would stop the Abramovichs and Mansours of the world building teams over night that challenge the monotony of the same richer teams winning. Perhaps they made the premiership a lot more interesting. This assumes they would have an interest in winning on the European front and not just at the domestic level.
As for Rangers, as a Celtic fan, I may be in the minority but I expect and hope Rangers survive. Not because Celtic need Rangers but I think Scottish football in general needs Rangers. The writing was on the wall in the late 90’s and early 2000’s for Rangers, hence my previous Tore Andre Flo comment, transfer fees and wages were astronomical, they spent a fortune.
As a Celtic fan I saw them almost fold in 1994 but for the intervention of Fergus McCann and an injection of cash. More importantly he brought about a fiscal responsibility and financial prudence. Up to that point Celtic were in the dark ages, family run, it was more ignorance of how to run a business in the modern world than anything else. Murray on the other hand just spent non-existent money…it was unsustainable.
As Peter Ridsdale found out at Leeds, there is price for “Living the dream”, now Rangers fans are paying the same price without having “Lived the dream”.
Edited by CodPiece XL, 14 February 2012 - 02:54 PM.